Black_Adder
Registered User
- Messages
- 153
Hi Gerry
I raise the borrowing money while having shares exceeding the amount, because it's a common practice and it's encouraged by the credit unions. It's an outrageous practice. The APR is presumably infinity? Much higher than the 1,295% rate at any rate.
But Black Adder raises an interesting question. Why does the Central Bank apply such strict lending criteria to Credit Unions for making small loans? I suppose it's because they have learned not to trust the Credit Unions and because the CB has no sense of materiality.
Brendan
Meanwhile the low-cost vehicle on the doorstep is being fed slow drip arsenic by the CBI. Death will come eventually.
Cu,s model was in the time frame of the crisis thought to be bust on arrears and yet their model survives.Their model is simply bust.
Even if the CBI adopted a balanced supervisory approach to them, they would not survive.
Or they would survive only by taking deposits from people and lending them back their own money.
Or by taking deposits from members and putting those deposits in a bank. They destroy value.
There isn't much demand from reasonably credit-worthy borrowers for small amounts. And the credit worthy ones can get loans from the banks.
Sure the Credit Unions compare well to the money lenders, but the losses on these loans would be huge.
Brendan
There isn't much demand from reasonably credit-worthy borrowers for small amounts. And the credit worthy ones can get loans from the banks.
Sure the Credit Unions compare well to the money lenders, but the losses on these loans would be huge.
Brendan
Their model is simply bust.
Even if the CBI adopted a balanced supervisory approach to them, they would not survive.
Or they would survive only by taking deposits from people and lending them back their own money.
Or by taking deposits from members and putting those deposits in a bank. They destroy value.
There isn't much demand from reasonably credit-worthy borrowers for small amounts. And the credit worthy ones can get loans from the banks.
Brendan
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